Special Report: Burning Coal

Coal stocks are back in focus. They’re breaking out to new highs, completing bases, and failing tops. 

We’re seeing all the hallmarks of emerging leadership from this industry group right now. 

As money continues to rotate into the commodity space, it’s the equities tied to these themes that are waking up first. 

Here’s our custom ASC Coal Index, which has been screaming higher after failing to break down earlier this year: 

Leaders are already emerging from different sides of the coal trade. 

Both thermal and coking coal stocks are catching a bid, and sending the same message. 

Let me break it down. 

Thermal coal, the fuel source for many power plants, is breaking to fresh all-time highs. 

At the same time, coking coal, the metallurgical variety used in steelmaking, is catching higher after a “failed top continuation” and successful retest of key support.

It’s no accident either. If you think back to the Covid cycle, coal and related energy groups were among the best performers in the entire market.

Now they’re waking up again, with fresh bases, breakouts, and momentum all lining up in favor of the bulls.

Last month, we banked a 5x on our BTU trade for Breakout Multiplier members, spotting an early breakout and riding the wave higher. 

I think there’s plenty of energy left to burn on this trade. 

So, let’s walk through some of the best and most actionable setups from both sides of the coal trade. 

Up first is the $3.75B thermal coal stock based in Missouri. This is industry leader Peabody Energy $BTU: 

Peabody is powering higher out of a massive multi-year base — one of the cleanest structural reversals in the entire coal space.

Price is now piercing through a key resistance zone around 30. A decisive breakout above this level would open the for a fresh leg higher.

With momentum firmly favoring the bulls, we like BTU long on strength above 30, targeting 48 as our initial objective and 77 over the longer term.

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